One of Europe's largest hedge funds is alleged to have asked Royal Bank of Scotland to alter the London interbank borrowing rate (Libor) five years ago, according to a court filing by a former trader at the lender.
Tan Chi Min, a former RBS trader who claims he was wrongfully dismissed by the bank after it fired him for allegedly trying to manipulate Libor - the average rate at which banks lend to each other - said he had received the request in 2007 from Brevan Howard.
"Brevan Howard telephoned on 20 Aug 2007 to ask the defendant to change the Libor rate," according to a paper filed with the Singapore High Court cited by Bloomberg.
The court filing alleges RBS "received this request without objection". Brevan Howard is not a party to the lawsuit and is not being investigated or sued for any alleged wrongdoing. RBS and Brevan Howard both declined to comment.
Mr Tan claimed in his filing that Scott Nygaard, head of short-term markets finance at RBS, knew about the call from Brevan Howard.
However, the filing contained no further details to support his allegations. However, he is reported to have said he would provide further evidence at a later stage.
The legal case follows Mr Tan's firing in December over allegations he had attempted to improperly influence RBS's Libor-setting staff between 2007 and 2011.
Mr Tan, who worked for RBS in Singapore as head of delta trading, claims he was wrongfully dismissed by the bank.Mr Tan is claiming $1.5m (£943,000) in bonuses and 3.3m RBS shares that he says the bank owes him in pay.
He claims in his lawsuit that asking for changes in Libor was "common practice" among RBS traders and that the bank "took requests from clients" to alter the rate.
Regulators across the world are investigating whether banks manipulated Libor during the financial crisis. All of the UK's major banks have issued statements saying they are involved in the investigation, including Barclays, HSBC, Lloyds Banking Group and RBS.
Libor is used to price about $360 trillion (£225 trillion) of financial products around the world, including everything from small business loans to complex financial derivatives.
The rate is set from a daily survey of leading banks, which are each asked to submit their borrowing rate every morning. The survey is undertaken on behalf of the British Bankers' Association, which represents the interests of the UK banking industry.
In the US, federal investigators are involved in the probe, which could potentially lead to criminal charges being brought against those involved if evidence of wrongdoing is uncovered.
Swiss banking group UBS has already sought to turn whistleblower and apply for immunity from prosecution in Canada.
Court papers filed in the Ontario Superior Court were last month reported to show that UBS was attempting to negotiate a plea bargain-type deal.
Traders at several banks have been suspended as the investigation continues, but no formal charges have been brought against any bank employee for manipulating Libor.
telegraph.co.uk
Tan Chi Min, a former RBS trader who claims he was wrongfully dismissed by the bank after it fired him for allegedly trying to manipulate Libor - the average rate at which banks lend to each other - said he had received the request in 2007 from Brevan Howard.
"Brevan Howard telephoned on 20 Aug 2007 to ask the defendant to change the Libor rate," according to a paper filed with the Singapore High Court cited by Bloomberg.
The court filing alleges RBS "received this request without objection". Brevan Howard is not a party to the lawsuit and is not being investigated or sued for any alleged wrongdoing. RBS and Brevan Howard both declined to comment.
Mr Tan claimed in his filing that Scott Nygaard, head of short-term markets finance at RBS, knew about the call from Brevan Howard.
However, the filing contained no further details to support his allegations. However, he is reported to have said he would provide further evidence at a later stage.
The legal case follows Mr Tan's firing in December over allegations he had attempted to improperly influence RBS's Libor-setting staff between 2007 and 2011.
Mr Tan, who worked for RBS in Singapore as head of delta trading, claims he was wrongfully dismissed by the bank.Mr Tan is claiming $1.5m (£943,000) in bonuses and 3.3m RBS shares that he says the bank owes him in pay.
He claims in his lawsuit that asking for changes in Libor was "common practice" among RBS traders and that the bank "took requests from clients" to alter the rate.
Regulators across the world are investigating whether banks manipulated Libor during the financial crisis. All of the UK's major banks have issued statements saying they are involved in the investigation, including Barclays, HSBC, Lloyds Banking Group and RBS.
Libor is used to price about $360 trillion (£225 trillion) of financial products around the world, including everything from small business loans to complex financial derivatives.
The rate is set from a daily survey of leading banks, which are each asked to submit their borrowing rate every morning. The survey is undertaken on behalf of the British Bankers' Association, which represents the interests of the UK banking industry.
In the US, federal investigators are involved in the probe, which could potentially lead to criminal charges being brought against those involved if evidence of wrongdoing is uncovered.
Swiss banking group UBS has already sought to turn whistleblower and apply for immunity from prosecution in Canada.
Court papers filed in the Ontario Superior Court were last month reported to show that UBS was attempting to negotiate a plea bargain-type deal.
Traders at several banks have been suspended as the investigation continues, but no formal charges have been brought against any bank employee for manipulating Libor.
telegraph.co.uk
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